Loan Costing, NSR and FHOG applications : Report

First Home Owner

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1 Recommending a product to client and reason for it...........................................................3
2. Supporting documents which would be needed in supporting loan...................................3
3 Loan costing sheet...............................................................................................................4
4 Loan servicing calculation (NSR).......................................................................................5
5 FHOG application relevant to the state territory and from internet....................................6
6 Loan application form.......................................................................................................28
CONCLUSION..............................................................................................................................44
REFERENCES..............................................................................................................................45

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INTRODUCTION
Acquiring a first home and having the ownership of that, there is need to pay any tax or obligations over
any repay. Hence, the government of Australia has planned to grant such scheme to the owners who are making
the starter home which in turn benefits them from not paying the GST over their property. In the present report,
there will be calculations relevant with the loan costing, NSR and FHOG applications which in turn helps the
owners in making the fruitful construction or ownership of the house.
1 Recommending a product to client and reason for it
By considering the case of Mr. and Mrs. Grimms which denotes that there will be need of having the
adequate home loan schemes for them. Hence, in order to have the perfect home loan which in turn helps them in
buying their first home will be based on favourable products or schemes which have fewer payments of interest as
well as exempted in the tax returns. However, the owners are being offered for the FHOG product which in turn
helps them in making the adequate acquisition for the home as well as they will not have to make payments for
the GST taxation over home loans (Home loan fees: Know what you might have to pay, 2017). Hence, the purpose
behind recommendation such product is because it facilitates less than 20% of the first home owners grant
application which are lodged adequate for the first time. However, in accordance with buying a first home the
grants are depended over the states the individual lives in and then contact will the local governmental bodies in
such states such as Old office of state revenue, state revenue office Victoria, revenue SA, NSW office, NT
revenue office etc. these are the legal bodies which helps citizens who are acquiring their first home.
2. Supporting documents which would be needed in supporting loan
In terms with the allowing the FHOG scheme the owners are required to make the adequate changes in the
operational activity. It a duty of a mortgage broker to submit all the relevant documents which are needed while
applying for the loans. Thus, these evidences helps the banker for the loan granting authority which in turn helps
in analysing the ability of an individual in making the loan payments (FIRST HOMEBUYER RESOURCES, 2016).
However, there will be need of various documents which helps in filling the form of the FHOG. Thus, such
relevant evidences are as follows:
Identity proof: In order to verify the individual is having the legal identity he is not a fraud or included in
any criminal acts. Hence, there will be required to verify various documents such as passport, driving license as
well as any photo identity card (Ong, 2016).
Income verification: In accordance with verifying the income statement of the owner or the individual
who is going to acquire a first home there is need to include various documents such as:
 Payslips: There will be requirements of the PYAG receipts of the individual which in turn reflects that
how must taxes being reduced by his salary as per is every day earning (Rahman, 2017). Hence, such
statements must be gain by the broker from applicant’s bank which are based on the last 3 pay slips and
these must be verified by them.
 Group certificates: These are the stamp record which are accepted along with the conjunct payslip

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 Employer's letters: If the person is engaged in doing any job at somewhere than there is need of having
the employment contract latter which in turn consist or all the relevant information with the pay scale of
such person.
 Income from other sources: These may include the revenue generated through rental property,
commission, incentive as well as bonus grants from the organisation in which he is employed (Taylor and
Dalton, 2016).
Assets: In accordance with the bank statements of the individual there is need to analyse the assets of the
person such as cars, stock, term deposits as well as any other property. Hence, apart from this there is need to
analyse the savings accounts of the individual (Christensen and Duncan, 2016).
Liabilities: These are relevant with the documents which are need to be filled by the broker such as Credit
cards, previous loans and grants as well as store cards (Yatesa and Yanottib, 2016). However, such documents
need to be analysed by the broker in term of gaining the knowledge relevant with the ability of the individual in
making the payments of the loans and other relevant liabilities.
3 Loan costing sheet
Estimate of Costs Worksheet - Purchase
Client/s Name: Mr. & Mrs. Grimms
Owner Occupier:
Yes
No
Lender (if chosen): ________________________
Estimated Costs:
New Lender’s Loan Establishment/Application Costs $300
Valuation cost (if not included above) $100
Property Transfer Stamp Duty $40,000
Solicitor/Settlement Agent/Conveyancing Charge $1000
Registration of new Mortgage $110
Register of Transfer of Title $220
Title Search $75
Miscellaneous Costs (if applicable):
- Rates adjustment $1150
- Home/contents insurance $500
SUB TOTAL
*

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$43455
Lenders Mortgage Insurance nil
TOTAL COSTS $43455
Summary
Purchase Price $485000
Plus Total Costs (from above) $43455
Equals Total Purchase Funds Required $528455
Less Loan Requested $460750
Equals Client Contribution $55000
LVR 95% 460750 (Loan Amount)
Client Signature: ................................ Date: ...................................
4 Loan servicing calculation (NSR)
1. Mr Grimms Loan Amount $460750
2. Mrs Grimms Security Value $55000
3. LVR 95.00%
Individuals - Annual
Gross Annual
Income Taxation
Net Annual
Income
Applicant 1 72000+36000
108000*37%
+87000=
126960 126960
Applicant 2 47000
47000*32.5%
+37000=
52275 52275
Applicant 3
Average Adjusted Net Profit (from above if applicable)
Total Net Income 155000 179235
Outgoings-Annual Loan Amount
Annual
Payment
Loan (loan being applied for)

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Personal loans
Other property loans
Credit cards
Other
Total Commitments
Less: 80% annual rental income
Total Commitments
Living Allowances-Annual (Dec 2014)
Single income 17906 Joint income 26033
Single income plus 1 24593
Joint income
plus 1 32360
Single income plus 2 30920
Joint income
plus 2 38687
Single income plus 3 37248
Joint income
plus 3 45014
Singe income plus 4 43575
Joint income
plus 4 51272
Summary
Annual Living Allowance (from above table)
Total commitments (from B above)
Total outgoings ©
C(Total outgoings) as a % of A (Total
Income). [C/A*100=]
NSR
equals_95_______
_% 460750
5 FHOG application relevant to the state territory and from internet
By considering the loans to be granted to Mr. and Mrs. Grimms it can be said that, there is need to fill the
FHOG form which in turn helps the broker in gathering all the relevant information (Walks, 2016). Hence, such
information gathering will help Mr. and Mrs Grimms in applying for the home loan as well as for the schemes in
which they can be able to obtain home loan without making any payment for GST (Application for First Home
Owner Grant, 2017). Following are the information and framework of the form which in turn need to be filled by
the professionals in context with Northern territory state year ended on June 2017.

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